India is the US 9th largest trading partner with $24.2 billion trade deficit in 2018. The US has confirmed that GSP benefits to India have been terminated, is a top beneficiary of the GSP program.
The Generalized System of Preferences (GSP), as was being accorded by the US to imports from India since 1976. Trump’s move will add tariffs 7% on Indian exports of goods like chemicals, auto parts and tableware to the U.S. GSP is a voluntary exercise of preferential market access that developed countries have the discretion to provide. Mr. Trump on Friday said India would be removed from the U.S.’s privileged-trading program.
What is GSP ?
GSP provides US tariff reduction for least developed countries. Its ensure preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories . The GSP program was instituted on January 1, 1976.On October 30, 2018, President Trump issued Presidential Proclamation 9813. The proclamation will implement changes to the Generalized System of Preferences (GSP
What is GSP ?
The United States will end preferential trade treatment for India from Wednesday, USPresident Donald Trump has announced, in a fresh economic headwind for New Delhi alongside slowing growth and record unemployment. India has been the single biggest beneficiary of the decades-old USGeneralized System